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Crypto markets experienced on Sunday, as a bitcoin approach to long-term support that, if breached, threatens to expose new bottoms in the short term. Altcoins and tokens were also on the back foot, as traders piled into dollar-backed stablecoins.
Bitcoin Approaches Critical Level
USDT, USD Coin and TrueUSD, all cryptocurrencies in the top-30 traded lower on Sunday. The bitcoin price reached at session low of $ 3,509.08. It has since recovered at $ 3,572.64, where it was down 2.5%.
Via Bitstamp, the BTC / USD exchange rate is still seen hovering in the low $ 3,500 range.
Bitcoin faces critical long-term support near $ 3,550, and a firm break below this level would likely lead to a further unwinding back down to $ 3,000. The leading digital currency bottomed just above $ 3,100 last month before regaining more than a third of its value. Read: Bitcoin Approaches "GTFO" Level.
Bitcoin is likely to experience heavy volatility in the short term. Over the past 30 days, dormant bitcoins wallets have been trading for 60% of the circulating supply. A similar influx preceded two major price swings in 2015 and 2017. More about this story: Bitcoin Likely Headed Lower as Whale Activate Long-Dormant Accounts.
Altcoins, Tokens Follow
Where bitcoin goes, altcoins and tokens seem to follow. This gravitational pull has only been strengthened during the bear market, and it was a broad decoupling between bitcoins and altcoins at the beginning of 2017.
The cryptocurrency market capitalization is down another $ 4 billion on Sunday, reaching a new three-week low of $ 118 billion. Trading volumes have been over the last seven days. On 24-hour basis, total market volumes have been drifted below $ 14 billion, according to CoinMarketCap.
Among the top-ten cryptocurrencies, losses ranged between 1.5% and 9.6%. Tron fell by the amount amount, as TRX drifted back to the low $ 0.02 range.
Tron Price Breaks Even For Week After 52% Growth; TRX Still Ahead of Pack
Ethereum declined 6.8% to $ 118.20, the lowest in three weeks. The Ethereum Network is scheduled to undergo a high level technical upgrade sometime over the next four days. More on the Constantinople hard fork can be found here.
XRP is currently trading 2.7% lower at $ 0.3205. Bitcoin cash and EOS are both down more than 6% at $ 125.88 and $ 2.28, respectively.
Litecoin's price fell 4% to $ 30.96. Bitvoin SV, now the tenth ranked cryptocurrency by market cap, drifted lower by 9% to $ 75.84.
Beyond the top-ten, Cardano fell 6.2% to $ 0.0406, Monero declined 3.3% to $ 43.61 and Dash fell 3.6% to $ 70.76.
The fallout from the 51% attack on the Ethereum Classic network has been particularly devastating for the ETC price. Ethereum Classic is down another 7.6% to $ 4.26, where it was ranked 18th by market cap.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the currency, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.
